U.S. manufacturing activity contracted at the fastest pace in 26 years last month, the Institute for Supply Management said Monday.
ISM鈥檚 monthly factory services index fell to a reading of 36.2, from 38.9 in October. Figures of more than 50 indicate expansion, while below that shows contraction.
The figure was the lowest since 1982, ISM said. Economists had forecast a drop to 37, Bloomberg reported.
The survey鈥檚 production index fell 2.6 points to 31.5, while new orders dropped 4.3, to 27.9. The price index plunged 11.5 points to a 25.5 reading.
鈥淥rder backlogs have fallen to the lowest level since ISM began tracking the Backlog of Orders Index in January 1993,鈥 said Norbert Ore, chair of ISM鈥檚 manufacturing committee.
鈥淭he prices index at 25.5% indicates that commodity prices continue to decline at a rapid rate. This is the lowest reading for the index since May 1949 when it registered 20.1%,鈥 he said.
The factory index measures manufacturing components of the economy. The trucking industry relies on factory orders and shipments for much of its business.
